Paranapanema decides to evaluate new businesses to increase
Gazeta Mercantil - 06/12/2008
At few days from making the operation that finalizes the financing reestructuration process the Paranapanema group is passing through since 2006, the company is already prepairing itself for a new expansion phase, which should include acquisitions and the creation of new enterprises in the chain it works - tin's, copper's, and fertilizers'. In an interview to Gazeta Mercantil company's president Geraldo Haenel revealed that the Paranapanema holding - which controls the Caraíba Metais, Mineração Taboca, Eluma, and Cibrafértil companies - should start having a more strategical attitude, evaluating possible new business. Haenel did not inform which business or kind of operation the group should pay special attention to. He only said that those should be operations integrated to existing business, «up ou down », or new business that bring synergy to the current operations. So the possibility of investments in non-iron metals, besides copper and tin, is practically ruled out. Although the company imports part of its raw material - specially copper and phosphatic rock mixture - and has part of its business directed to the foreign market (between 20% and 30%, depending on the company), the internationalization is ruled out at this moment. The company does not reveal its investments plan for this year. In 2007, R$ 181.33 million (US$ 94 million) was invested, 35% more than in the preceding year. The first quarter of this year alone, R$ 21.16 million (US$ 13 million) was invested, 66.8% above the investments in last year's same period. All companies are either amidst expansion projects or have just concluded them.